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Financial Regulations

Reviewed & Adopted 05/03/2019


Index

  1. General 2
  2. Accounting and Audit (Internal ad External) 4
  3. Annual Estimates (Budget) and Forward Planning 5
  4. Budgetary Control and Authority to Spend 5
  5. Banking Arrangements and Authorisation of Payments 6
  6. Instructions for the Making of Payments 7
  7. Payment of Salaries 9
  8. Loans and Investments 10
  9. Income 10
  10. Orders for Work, Goods and Services 11
  11. Contracts 11
  12. Payments Under Contracts for Building or Other Construction Works 13
  13. Stores and Equipment 13
  14. Assets, Properties ad Estates 13
  15. Insurance 14
  16. Charities 14
  17. Risk Management 14
  18. Suspension and Revision of Financial Regulations 14
  19. GENERAL
    1.1. These Financial Regulations govern the conduct of financial management by the Council and may only be
    amended or varied by resolution of the Council. Financial Regulations are one of the Council’s three
    governing policy documents providing procedural guidance for Members and Officers. Financial Regulations
    must be observed in conjunction with the Council’s Standing Orders and any individual Financial
    Regulations relating to contracts.
    1.2. The Council is responsible in law for ensuring that its financial management is adequate and effective and
    that the Council has a sound system of internal control which facilitates the effective exercise of the
    Council’s functions, including arrangements for the management of risk.
    1.3. The Council’s accounting control systems must include measures:
    • for the timely production of accounts;
    • that provide for the safe and efficient safeguarding of public money;
    • to prevent and detect inaccuracy and fraud; and
    • identifying the duties of officers.
    1.4. These financial regulations demonstrate how the Council meets these responsibilities and requirements.
    1.5. At least once a year, prior to approving the Annual Governance Statement, the Council must review the
    effectiveness of its system of internal control which shall be in accordance with proper practices.
    1.6. A breach of these Regulations by an employee maybe regarded as misconduct / gross misconduct
    depending on the circumstances will be dealt with in line with the Councils Grievance & Disciplinary
    Procedures.
    1.7. Members of Council are expected to follow the instructions within these Regulations and not to entice
    employees to breach them. Failure to follow instructions within these Regulations brings the office of
    Councillor into disrepute.
    1.8. The Responsible Financial Officer (RFO) holds a statutory office to be appointed by the Council.
    1.9. The RFO;
    • acts under the policy direction of the Council;
    • administers the Council’s financial affairs in accordance with all Acts, Regulations and proper
    practices;
    • determines on behalf of the Council its accounting records and accounting control systems;
    • ensures the accounting control systems are observed;
    • maintains the accounting records of the Council up to date in accordance with proper practices;
    • assists the Council to secure economy, efficiency and effectiveness in the use of its resources;
    and
    • produces financial management information as required by the Council.
    1.10. The accounting records determined by the RFO shall be sufficient to show and explain the Council’s
    transactions and to enable the RFO to ensure that any income and expenditure account and statement
    of balances, or record of receipts and payments and additional information, as the case may be, or
    management information prepared for the council from time to time comply with the Accounts and Audit
    Regulations.
    1.11. The accounting records determined by the RFO shall in particular contain:
    • entries from day to day of all sums of money received and expended by the Council and the
    matters to which the income and expenditure or receipts and payments account relate;
    • a record of the assets and liabilities of the Council; and
    • wherever relevant, a record of the Council’s income and expenditure in relation to claims made, or
    to be made, for any contribution, grant or subsidy.
    1.12. The accounting control systems determined by the RFO shall include:
    • procedures to ensure that the financial transactions of the Council are recorded as soon as
    reasonably practicable and as accurately and reasonably as possible;
    • procedures to enable the prevention and detection of inaccuracies and fraud and the ability to
    reconstruct any lost records;
    • identification of the duties of officers dealing with financial transactions and division of
    responsibilities of those officers in relation to significant transactions;
    • procedures to ensure that uncollectable amounts, including any bad debts are not submitted to
    the Council for approval to be written off except with the approval of the RFO and that the
    approvals are shown in the accounting records; and
    • measures to ensure that risk is properly managed.
    1.13. The Council is not empowered by these Regulations or otherwise to delegate certain specified
    decisions. In particular any decision regarding:
    • setting the final budget or the precept (Council Tax Requirement);
    • approving accounting statements;
    • approving an annual governance statement;
    • borrowing;
    • declaring eligibility for the General Power of Competence; and
    • addressing recommendations in any report from the external auditors,
    shall be a matter for the Full Council only.
    The following will be dealt with by the Management and Finance Committee
    • writing off bad debts;
    • addressing recommendations in any report from the internal auditors,
    1.14. In addition the Council must:
    • determine and keep under regular review the bank mandate for all Council bank accounts;
    • approve any grant or a single commitment in excess of £10,000; and
    • in respect of the annual salary for any employee have regard to recommendations about annual
    salaries of employees made by the relevant Committee in accordance with its terms of reference.
    1.15. In these financial regulations, references to the Accounts and Audit Regulations or ‘the regulations’ shall
    mean the regulations issued under the provisions of section 27 of the Audit Commission Act 1998, or
    any superseding legislation, and then in force unless otherwise specified.
    In these Financial Regulations the term ‘proper practice’ or ‘proper practices’ shall refer to guidance
    issued in Governance and Accountability for Local Councils– a Practitioners’ Guide (England) issued by
    the Joint Practitioners Advisory Group (JPAG), available from the websites of NALC and the Society for
    Local Council Clerks (SLCC).
  20. ACCOUNTING AND AUDIT (INTERNAL AND EXTERNAL)
    2.1. All accounting procedures and financial records of the Council shall be determined by the RFO in
    accordance with the Accounts and Audit Regulations, appropriate guidance and proper practices.
    2.2. On a monthly basis, the Councils Management and Finance Committee shall verify bank reconciliations
    for all accounts held by the Council and will record the verification by a minute confirming the review
    within the minutes of that meeting.
    2.3. The RFO shall complete the annual statement of accounts, annual report, and any related documents of the
    Council contained in the Annual Return (as specified in proper practices) as soon as practicable after the
    end of the financial year and having certified the accounts shall submit them and report thereon to the
    Council within the timescales set by the Accounts and Audit Regulations.

2.4. The Council shall ensure that there is an adequate and effective system of internal audit of its accounting
records, and of its system of internal control in accordance with proper practices. Any officer or member of
the Council shall make available such documents and records as appear to the Council to be necessary for
the purpose of the audit and shall, as directed by the Council, supply the RFO, internal auditor, or external
auditor with such information and explanation as the Council considers necessary for that purpose.
2.5. The internal auditor shall be appointed by and shall carry out the work in relation to internal controls required
by the Council in accordance with proper practices.
2.6. The internal auditor shall:
• be competent and independent of the financial operations of the Council;
• report to Council in writing, or in person, on a regular basis with a minimum of one annual written
report during each financial year;
• to demonstrate competence, objectivity and independence, be free from any actual or perceived
conflicts of interest, including those arising from family relationships; and
• have no involvement in the financial decision making, management or control of the Council.
2.7. Internal or external auditors may not under any circumstances:
• perform any operational duties for the Council;
• initiate or approve accounting transactions; or
• direct the activities of any Council employee, except to the extent that such employees have been
appropriately assigned to assist the internal auditor.
2.8. For the avoidance of doubt, in relation to internal audit the terms ‘independent’ and ‘independence’ shall
have the same meaning as is described in proper practices.
2.9. The RFO shall make arrangements for the exercise of electors’ rights in relation to the accounts including
the opportunity to inspect the accounts, books, and vouchers and display or publish any notices and
statements of account required by Audit Commission Act 1998, or any superseding legislation, and the
Accounts and Audit Regulations.
2.10. The RFO shall, without undue delay, bring to the attention of all councillors any correspondence or report
from internal or external auditors.

  1. ANNUAL ESTIMATES (BUDGET) AND FORWARD PLANNING
    3.1. Each committee (if any) shall review its three year forecast of revenue and capital income and expenditure.
    Having regard to the forecast, it shall thereafter formulate and submit proposals for the following financial
    year to the Management and Finance Committee not later than the end of November each year including
    any proposals for revising the forecast.
    3.2. The RFO must each year, by no later than December, prepare detailed estimates of all income and
    expenditure including the use of reserves and all sources of funding for the following financial year in the
    form of a budget to be considered by the Management and Finance committee and the Council.
    3.3. The Council shall consider annual budget proposals in relation to the Council’s three year forecast of
    revenue and capital income and expenditure including recommendations for the use of reserves and
    sources of funding and update the forecast accordingly.
    3.4. The Council shall fix the precept (council tax requirement), and relevant basic amount of council tax to be
    levied for the ensuing financial year not later than by the end of January each year. The RFO shall issue the
    precept to the billing authority and shall supply each member with a copy of the approved annual budget.
    3.5. The approved annual budget shall form the basis of financial control for the ensuing year.
  2. BUDGETARY CONTROL AND AUTHORITY TO SPEND
    4.1. Expenditure on revenue items may be authorised up to the amounts included for that class of expenditure in
    the approved budget. This authority is to be determined by:
    • the Council for all items over £10,000;
    • a duly delegated committee of the Council for items over £3,000; or
    • the Clerk and / or RFO, in consultation with Chairman of Council or Chairman of the appropriate
    committee, for any items below £3,000.
    Such authority is to be evidenced by a Minute or by an authorisation slip duly signed by the Clerk, and
    where necessary also by verbal authorisation by the appropriate Chairman.
    Contracts may not be disaggregated to avoid controls imposed by these regulations.
    4.2. No expenditure may be authorised that will exceed the amount provided in the budget for that class of
    expenditure other than by resolution of the Council, or duly delegated committee. During the budget year
    and with the approval of Council having considered fully the implications for public services, unspent and
    available amounts may be moved to other budget headings or to an earmarked reserve as appropriate
    (‘virement’).
    4.3. Unspent provisions in the capital budget for completed projects shall not be carried forward to a subsequent
    year.
    4.4. The salary budgets are to be reviewed at least annually in October for the following financial year and such
    review shall be evidenced by a hard copy schedule signed by the Clerk and the Chairman of Council or
    relevant committee. The RFO will inform committees of any changes impacting on their budget requirement
    for the coming year in good time.
    4.5. In cases of extreme risk to the delivery of Council services, the Clerk and / or RFO may authorise revenue
    expenditure on behalf of the Council which in the Clerk’s, or Deputy in the absence of the Clerk, judgement
    it is necessary to carry out. Such expenditure includes repair, replacement or other work, whether or not
    there is any budgetary provision for the expenditure, subject to a limit of £3,000. The Clerk and / or RFO
    shall report such action to the chairman as soon as possible and to the Council as soon as practicable
    thereafter.
    4.6. No expenditure shall be authorised in relation to any capital project and no contract entered into or tender
    accepted involving capital expenditure unless the Council is satisfied that the necessary funds are available
    and the requisite borrowing approval has been obtained.
    4.7. All capital works shall be administered in accordance with the Council’s Standing Orders and Financial
    Regulations relating to contracts.
    4.8. The RFO shall regularly provide the Council with a statement of income and expenditure to date under each
    head of the budgets, comparing actual expenditure to the appropriate date against that planned as shown in
    the budget. These statements are to be prepared at least at the end of each financial quarter and shall show
    explanations of material variances. For this purpose “material” shall be in excess of £100 of the budget.
    4.9. Changes in earmarked reserves shall be approved by Council as part of the budgetary control process.
  3. BANKING ARRANGEMENTS AND AUTHORISATION OF PAYMENTS
    5.1. The Council’s banking arrangements, including the bank mandate, shall be made by the RFO and approved
    by the Council; banking arrangements may not be delegated to a committee. They shall be regularly
    reviewed for safety and efficiency.
    5.2. The RFO shall prepare a schedule of payments requiring authorisation, forming part of the Agenda for the
    Meeting and, together with the relevant invoices, present the schedule to the Management and Finance
    Committee. The committee shall review the schedule for compliance and, having satisfied itself shall
    authorise payment by a resolution of the Management and Finance Committee. The approved schedule
    shall be ruled off and initialled by the Chairman of the Meeting. A detailed list of all payments shall be
    disclosed within or as an attachment to the minutes of the meeting at which payment was authorised.
    Personal payments (including salaries, wages, expenses and any payment made in relation to the
    termination of a contract of employment) may be summarised to remove public access to any personal
    information.
    5.3. All invoices for payment shall be examined, verified and certified by the RFO to confirm that the work, goods
    or services to which each invoice relates has been received, carried out, examined and represents
    expenditure previously approved by the Council.
    5.4. The RFO shall examine invoices for arithmetical accuracy and analyse them to the appropriate expenditure
    heading. The RFO shall take all steps to pay all invoices submitted, and which are in order, at the next
    available Management and Finance Committee Meeting.
    5.5. The Clerk and RFO shall have delegated authority to authorise the payment of items only in the following
    circumstances:
    a) If a payment is necessary to avoid a charge to interest under the Late Payment of Commercial Debts
    (Interest) Act 1998, and the due date for payment is before the next scheduled Meeting of committee,
    where the Clerk and RFO certify that there is no dispute or other reason to delay payment, provided
    that a list of such payments shall be submitted to the next appropriate meeting of Management and
    Finance Committee;
    b) An expenditure item authorised under 5.6 below (continuing contracts and obligations) provided that
    a list of such payments shall be submitted to the next appropriate meeting of Management and
    Finance Committee; or
    c) fund transfers within the Councils banking arrangements up to the sum of £30,000, provided that a
    list of such payments shall be submitted to the next appropriate meeting of Management and Finance
    Committee.
    5.6. For each financial year the Clerk and RFO shall draw up a list of due payments which arise on a regular
    basis as the result of a continuing contract, statutory duty, or obligation (such as but not exclusively),
    Salaries, PAYE and NI, Superannuation Fund and regular maintenance contracts and the like for which
    Management and Finance Committee, may authorise payment for the year provided that the requirements
    of regulation 4.1 (Budgetary Controls) are adhered to, provided also that a list of such payments shall be
    submitted to the next appropriate meeting of the Management and Finance Committee.
    5.7. A record of regular payments made under 5.6 above shall be drawn up and be signed by two members on
    each and every occasion when payment is authorised – thus controlling the risk of duplicated payments
    being authorised and / or made.
    5.8. In respect of grants a duly authorised committee shall approve expenditure within any limits set by Council
    and in accordance with any policy statement approved by Council. Any Revenue or Capital Grant in excess
    of £5,000 shall before payment, be subject to ratification by resolution of the Council.
    5.9. Members are subject to the Code of Conduct that has been adopted by the Council and shall comply with
    the Code and Standing Orders when a decision to authorise or instruct payment is made in respect of a
    matter in which they have a disclosable pecuniary or other interest, unless a dispensation has been granted.
    5.10. The Council will aim to rotate the duties of members in these Regulations so that onerous duties are shared
    out as evenly as possible over time.
    5.11. Any changes in the recorded details of suppliers, such as bank account records, shall be noted on the next
    Management and Finance Committee agenda.
  4. INSTRUCTIONS FOR THE MAKING OF PAYMENTS
    6.1. The Council will make safe and efficient arrangements for the making of its payments.
    6.2. Following authorisation under Financial Regulation 5 above, the Council, a duly delegated committee or, if
    so delegated, the Clerk or RFO shall give instruction that a payment shall be made.
    6.3. All payments shall be effected by cheque or other instructions to the Council’s bankers, or otherwise, in
    accordance with a resolution of Management and Finance Committee.
    6.4. Cheques or orders for payment drawn on the bank account in accordance with the schedule as presented
    to Council or committee shall be signed by two members of Council in accordance with a resolution
    instructing that payment. A member who is a bank signatory, having a connection by virtue of family or
    business relationships with the beneficiary of a payment, should not, under normal circumstances, be a
    signatory to the payment in question.
    6.5. To indicate agreement of details shown on the cheque/order for payment with the counterfoil and the invoice
    or similar documentation, signatories shall also initial the cheque counterfoil.
    6.6. Cheques or orders for payment shall not normally be presented for signature other than at a Council or
    committee meeting (including immediately before or after such a meeting). Any signatures obtained away
    from such meetings shall be reported to the Management and Finance Committee at the next convenient
    meeting.
    6.7. If thought appropriate by the Council, payment for utility supplies (energy, telephone and water) and any
    National Non-Domestic Rates may be made by variable Direct Debit. The approval of the use of a variable
    Direct Debit shall be renewed by resolution of the Council at least every two years.
    6.8. If thought appropriate by the Council, payment for certain items (principally Salaries) may be made by
    Banker’s Standing Order provided that the instructions are signed, or otherwise evidenced by two members
    are retained and any payments are reported to council as made. The approval of the use of a Banker’s
    Standing Order shall be renewed by resolution of the Council at least every two years.
    6.9. If thought appropriate by the Council, payment for certain items may be made by BACS or CHAPS methods
    provided that the instructions for each payment are signed, or otherwise evidenced, by two authorised bank
    signatories are retained and any payments are reported to council as made. The approval of the use of
    BACS or CHAPS shall be renewed by resolution of the Council at least every two years.
    6.10. If thought appropriate by the Council payment for certain items may be made by internet banking transfer
    provided evidence is retained showing which members approved payment.
    6.11. Where a computer requires use of a personal identification number (PIN) or other password(s), for
    access to the Council’s records on that computer, a note shall be made of the PIN and Passwords and
    shall be retained within the Council’s safe. In line with Standing Order 16 where the Responsible
    Finance Officer is absent for a period of time that would seriously harm and damage the Council’s
    financial affairs and electronic Council shall appoint an appropriate staff member to access the required
    information to undertake the work. After the envelope has been opened, in any circumstances, the PIN
    and / or passwords shall be changed as soon as practicable.
    6.12. No employee or councillor shall disclose any PIN or password, relevant to the working of the Council or its
    bank accounts, to any person not authorised in writing by the Council or a duly delegated committee.
    6.13. Regular back-up copies of the records on any computer shall be made and shall be stored securely away
    from the computer in question, and preferably off site.
    6.14. The Council, and any members using computers for the Council’s financial business, shall ensure that antivirus, anti-spyware and firewall software with automatic updates, together with a high level of security, is
    used.
    6.15. Where internet banking arrangements are made with any bank, the RFO shall be appointed as the Service
    Administrator. The bank mandate approved by the Council shall identify a number of Councillors who will be
    authorised to approve transactions on those accounts. The bank mandate will state clearly the amounts of
    payments that can be instructed by the use of the Service Administrator alone, or by the Service
    Administrator with a stated number of approvals.
    6.16. Access to any internet banking accounts will be directly to the access page (which may be saved under
    “favourites”), and not through a search engine or e-mail link. Remembered or saved passwords facilities
    must not be used on any computer used for Council banking work. Breach of this Regulation will be treated
    as a very serious matter under these regulations.
    6.17. Changes to account details for suppliers, which are used for internet banking may only be changed on
    written hard copy notification by the supplier and supported by hard copy authority for change signed by
    both the Clerk and the RFO.
    6.18. Any Debit Card issued for use will be specifically restricted to the Clerk and the RFO and will also be
    restricted to a single transaction maximum value of £1,000 unless authorised by Council or Management
    and Finance Committee in writing before any order is placed.
    6.19. A pre-paid debit card may be issued to employees with varying limits. These limits will be set by the
    Management and Finance Committee. Transactions and purchases made will be reported to the
    Management and Finance Committee and authority for topping-up shall be at the discretion of the
    Management and Finance Committee.
    6.20. Any corporate credit card opened by the Council will be specifically restricted to use by the Clerk and RFO
    and shall be subject to automatic payment in full at each month-end.
    6.21. Any trade card account opened by the Council will be specifically restricted to use by the Clerk, RFO,
    Operations Manager and Grounds Maintenance Team Leader and shall be subject to automatic payment in
    full at each month-end.
    6.22. The RFO may provide petty cash to Officers for the purpose of defraying operational and other expenses.
    Vouchers for payments made shall be forwarded to the RFO with a claim for reimbursement.
    a) The RFO shall maintain as petty cash float of £100 for the purpose of defraying operational and other
    expenses. Vouchers for payments made from petty cash shall be kept to substantiate the payment.
    b) Income received must not be paid into the petty cash float but must be separately banked, as
    provided elsewhere in these regulations.
    c) Payments to maintain the petty cash float shall be shown separately on the schedule of payments
    presented to Council under 5.2 above.
  5. PAYMENT OF SALARIES
    7.1. As an employer, the Council shall make arrangements to meet fully the statutory requirements placed on all
    employers by PAYE and National Insurance legislation. The payment of all salaries shall be made in
    accordance with payroll records and the rules of PAYE and National Insurance currently operating, and
    salary rates shall be as agreed by Council, or duly delegated committee.
    7.2. Payment of salaries and payment of deductions from salary such as may be required to be made for tax,
    national insurance and pension contributions, or similar statutory or discretionary deductions must be made
    in accordance with the payroll records and on the appropriate dates stipulated in employment contracts,
    provided that each payment is reported to the next available Council meeting, as set out in these regulations
    above.
    7.3. No changes shall be made to any employee’s pay, emoluments, or terms and conditions of employment
    without the prior consent of the relevant committee, unless by virtue of changes of adopted national pay
    agreements.
    7.4. Each and every payment to employees of net salary and to the appropriate creditor of the statutory and
    discretionary deductions shall be recorded in a separate confidential record. This confidential record is not
    open to inspection or review (under the Freedom of Information Act 2000 or otherwise) other than:
    a) by any councillor who can demonstrate a need to know;
    b) by the internal auditor;
    c) by the external auditor; or
    d) by any person authorised under Audit Commission Act 1998, or any superseding legislation.
    7.5. The total of such payments in each calendar month shall be reported with all other payments as made as
    may be required under these Financial Regulations, to ensure that only payments due for the period have
    actually been paid.
    7.6. An effective system of personal performance management should be maintained for the Senior Officers.
    7.7. Any termination payments shall be supported by a clear business case and reported to the Council.
    Termination payments shall only be authorised by Council.
    7.8. Before employing interim staff the Council must consider a full business case.
  6. LOANS AND INVESTMENTS
    8.1. All borrowings shall be effected in the name of the Council, after obtaining any necessary borrowing
    approval. Any application for borrowing approval shall be approved by Council as to terms and purpose.
    The application for Borrowing Approval, and subsequent arrangements for the Loan shall only be approved
    by Full Council.
    8.2. Any financial arrangement which does not require formal Borrowing Approval from the Secretary of State
    (such as Hire Purchase or Leasing of tangible assets) shall be subject to approval by the Full Council. In
    each case a report in writing shall be provided to Council in respect of value for money for the proposed
    transaction.
    8.3. All loans and investments shall be negotiated in the name of the Council and shall be for a set period in
    accordance with Council policy.
    8.4. The Council shall consider the need for an Investment Strategy and Policy which, if drawn up, shall be in
    accordance with relevant regulations, proper practices and guidance. Any Strategy and Policy shall be
    reviewed by the Council at least annually.
    8.5. All investments of money under the control of the Council shall be in the name of the Council.
    8.6. All investment certificates and other documents relating thereto shall be retained in the custody of the RFO.
    8.7. Payments in respect of short term or long term investments, shall be made in accordance with Regulation 5
    (Authorisation of payments) and Regulation 6 (Instructions for payments).
  7. INCOME
    9.1. The collection of all sums due to the Council shall be the responsibility of and under the supervision of the
    RFO.
    9.2. Particulars of all charges to be made for work done, services rendered or goods supplied shall be agreed
    annually by the Council, notified to the RFO and the RFO shall be responsible for the collection of all
    accounts due to the Council.
    9.3. The Council will review all fees and charges at least annually, following a report of the Clerk.
    9.4. Any sums found to be irrecoverable and any bad debts shall be subject to the Councils Debt Recovery
    Policy.
    9.5. All sums received on behalf of the Council shall be banked intact as directed by the RFO. In all cases, all
    receipts shall be deposited with the Council’s bankers with such frequency as the RFO considers
    necessary.
    9.6. The origin of each receipt shall be entered on the paying-in slip.
    9.7. Personal cheques shall not be cashed out of money held on behalf of the Council.
    9.8. The RFO shall promptly complete any VAT Return that is required. Any repayment claim due in accordance
    with VAT Act 1994 section 33 shall be made at least annually coinciding with the financial year end.
    9.9. Where any significant sums of cash are regularly received by the Council, the RFO shall take such steps as
    are agreed by the Council to ensure that more than one person is present when the cash is counted in the
    first instance, that there is a reconciliation to some form of control such as ticket issues, and that appropriate
    care is taken in the security and safety of individuals banking such cash.
    9.10. Any income arising which is the property of a charitable trust shall be paid into a charitable bank
    account. Instructions for the payment of funds due from the charitable trust to the Council (to meet
    expenditure already incurred by the authority) will be given by the Managing Trustees of the charity
    meeting separately from any Council meeting (see also Regulation 16 below).
  8. ORDERS FOR WORK, GOODS AND SERVICES
    10.1. A purchase order shall be issued for all work, goods and services unless a formal contract is to be prepared
    or an official order would be inappropriate. Copies of orders shall be retained.
    10.2. Purchase Orders shall be controlled by the RFO.
    10.3. All Members and Officers are responsible for obtaining value for money at all times. An Officer issuing a
    purchase order shall ensure as far as reasonable and practicable that the best available terms are obtained
    in respect of each transaction, usually by obtaining where ever possible two or more quotations or estimates
    from appropriate suppliers, subject to any de minimis provisions in Regulation 11.1 below.
    10.4. A Member may not issue a purchase order or make any contract on behalf of the Council.
    10.5. The RFO shall verify the lawful nature of any proposed purchase before the issue of any purchase
    order, and in the case of new or infrequent purchases or payments, the RFO shall ensure that the
    statutory authority shall be reported to the meeting at which the order is approved so that the Minutes
    can record the power being used.
  9. CONTRACTS
    11.1. Procedures as to contracts are laid down as follows:
    a. Every contract shall comply with these Financial Regulations, and no exceptions shall be made
    otherwise than in an emergency provided that this regulation need not apply to contracts which relate
    to items (i) to (vi) below:
    i. for the supply of gas, electricity, water, sewerage, broadband and telephone services;
    ii. for specialist services such as are provided by solicitors, accountants, surveyors and planning
    consultants;
    iii. for work to be executed or goods or materials to be supplied which consist of repairs to or parts for
    existing machinery or equipment or plant;
    iv. for work to be executed or goods or materials to be supplied which constitute an extension of an
    existing contract by the Council;
    v. for additional audit work of the external Auditor up to an estimated value of £500 (in excess of this
    sum the Clerk and RFO shall act after consultation with the Leader); and
    vi. for goods or materials proposed to be purchased which are proprietary articles and / or are only
    sold at a fixed price.
    b. Where the Council intends to procure or award a public supply contract, public service contract or
    public works contract as defined by The Public Contracts Regulations 2015 (“the Regulations”) which
    is valued at £25,000 or more, the Council shall comply with the relevant requirements of the
    Regulations1
    .
    c. The full requirements of The Regulations, as applicable, shall be followed in respect of the tendering
    and award of a public supply contract, public service contract or public works contract which exceed
    thresholds in The Regulations set by the Public Contracts Directive 2014/24/EU (which may change
    from time to time)2
    .
    d. When applications are made to waive financial regulations relating to contracts to enable a price to
    be negotiated without competition the reason shall be embodied in a recommendation to the Council.
    e. Such invitation to tender shall state the general nature of the intended contract and the Clerk shall
    obtain the necessary technical assistance to prepare a specification in appropriate cases. The
    invitation shall in addition state that tenders must be addressed to the Clerk in the ordinary course of
    post. Each tendering firm shall be supplied with a specifically marked envelope in which the tender is
    to be sealed and remain sealed until the prescribed date for opening tenders for that contract.
    f. All sealed tenders shall be opened at the same time on the prescribed date by the Clerk in the
    presence of at least one Member of Council.
    g. Any invitation to tender issued under this regulation shall be subject to Standing Order 18d, and shall
    refer to the terms of the Bribery Act 2010.
    h. When it is to enter into a contract of less than £25,000 in value for the supply of goods or materials or
    for the execution of works or specialist services other than such goods, materials, works or specialist
    services as are excepted as set out in paragraph (a) the Clerk or RFO shall obtain at least 2
    preferably 3 quotations (priced descriptions of the proposed supply); where the value is below £3,000
    and above £1,000 the Clerk or RFO shall strive to obtain at least 2 estimates. Otherwise, Regulation
    10 (3) above shall apply.
    i. The Council shall not be obliged to accept the lowest or any tender, quote or estimate.
    j. Should it occur that the Council, or duly delegated committee, does not accept any tender, quote or
    estimate, the work is not allocated and the Council requires further pricing, provided that the
    specification does not change, no person shall be permitted to submit a later tender, estimate or
    quote who was present when the original decision making process was being undertaken.
    k. Tenders will be scored by a panel of Officers and Members. For every tender process the Council will
    appoint a panel which shall consist of no less than 3 individuals and no more than 5 individuals at
    least one of which must be a Council member and one a Council officer. Tenders will be scored in
    accordance with a scoring matrix which must by resolution have been adopted by the Councils
    Management and Finance Committee. Scores will be reported to the Management and Finance
    committee who shall make the final award of the contract based on the scores presented to them by
    the tender scoring panel. The tender scoring panel shall appoint a Chairman from within the panel
    and scores will be determined by majority vote. The Chairman shall have a casting vote if required.

1 The Regulations require councils to use the Contracts Finder website to advertise contract opportunities, set out the
procedures to be followed in awarding new contracts and to publicise the award of new contracts
2 Thresholds currently applicable are:
a. For public supply and public service contracts 209,000 Euros (£164,176)
b. For public works contracts 5,225,000 Euros (£4,104,394)

  1. PAYMENTS UNDER CONTRACTS FOR BUILDING OR OTHER CONSTRUCTION WORKS
    12.1. Payments on account of the contract sum shall be made within the time specified in the contract by the RFO
    upon authorised certificates of the architect or other consultants engaged to supervise the contract (subject
    to any percentage withholding as may be agreed in the particular contract).
    12.2. Where contracts provide for payment by instalments the RFO shall maintain a record of all such payments.
    In any case where it is estimated that the total cost of work carried out under a contract, excluding agreed
    variations, will exceed the contract sum of 5% or more a report shall be submitted to the Council.
    12.3. Any variation to a contract or addition to or omission from a contract must be approved by the Council and
    Clerk to the contractor in writing, the Council being informed where the final cost is likely to exceed the
    financial provision.
  2. STORES AND EQUIPMENT
    13.1. The Officer in charge of each section shall be responsible for the care and custody of stores and equipment
    in that section.
    13.2. Delivery Notes shall be obtained in respect of all goods received into store or otherwise delivered and goods
    must be checked as to order and quality at the time delivery is made.
    13.3. Stocks shall be kept at the minimum levels consistent with operational requirements.
    13.4. The Operations Manager shall be responsible for periodic checks of stocks and stores at least annually.
  3. ASSETS, PROPERTIES AND ESTATES
    14.1. The Clerk shall make appropriate arrangements for the custody of all title deeds and Land Registry
    Certificates of properties held by the Council. The RFO shall ensure a record is maintained of all properties
    held by the Council, recording the location, extent, plan, reference, purchase details, nature of the interest,
    tenancies granted, rents payable and purpose for which held in accordance with Accounts and Audit
    Regulations.
    14.2. No tangible moveable property shall be purchased or otherwise acquired, sold, leased or otherwise
    disposed of, without the authority of the Council, together with any other consents required by law, save
    where the estimated value of any one item of tangible movable property does not exceed £250.
    14.3. No real property (interests in land) shall be sold, leased or otherwise disposed of without the authority of the
    Council, together with any other consents required by law. In each case a report in writing shall be provided
    to Council in respect of valuation and surveyed condition of the property (including matters such as planning
    permissions and covenants) together with a proper business case (including an adequate level of
    consultation with the electorate).
    14.4. No real property (interests in land) shall be purchased or acquired without the authority of the Full Council.
    In each case a report in writing shall be provided to Council in respect of valuation and surveyed condition of
    the property (including matters such as planning permissions and covenants) together with a proper
    business case (including an adequate level of consultation with the electorate).
    14.5. Subject only to the limit set in Regulation 14.2, no tangible moveable property shall be purchased or
    acquired without authority of the Full Council. In each case a report in writing shall be provided to Council
    with a full business case.
    14.6. The RFO shall ensure that an appropriate and accurate Register of Assets and Investments is kept up to
    date. The continued existence of tangible assets shown in the Register shall be verified at least annually,
    possibly in conjunction with a health and safety inspection of assets.
  4. INSURANCE
    15.1. Following the annual risk assessment (per Regulation 17), the RFO shall effect all insurances and negotiate
    all claims on the Council’s insurers in consultation with the Clerk.
    15.2. The Clerk shall give prompt notification to the RFO of all new risks, properties or vehicles which require to
    be insured and of any alterations affecting existing insurances.
    15.3. The RFO shall keep a record of all insurances effected by the Council and the property and risks covered
    thereby and annually review it.
    15.4. The RFO shall be notified of any loss liability or damage or of any event likely to lead to a claim, and shall
    report these to Council at the next available meeting.
    15.5. All appropriate members and employees of the Council shall be included in a suitable form of security or
    fidelity guarantee insurance which shall cover the maximum risk exposure as determined by the Council, or
    duly delegated committee.
  5. CHARITIES
    16.1. Where the Council is sole managing trustee of a charitable body the Clerk and RFO shall ensure that
    separate accounts are kept of the funds held on charitable trusts and separate financial reports made in
    such form as shall be appropriate, in accordance with Charity Law and legislation, or as determined by the
    Charity Commission. The Clerk and RFO shall arrange for any audit or independent examination as may be
    required by Charity Law or any Governing Document.
  6. RISK MANAGEMENT
    17.1. The Council is responsible for putting in place arrangements for the management of risk. The Clerk, with the
    RFO, shall prepare, for approval by the Council, risk management policy statements in respect of all
    activities of the Council. Risk policy statements and consequential risk management arrangements shall be
    reviewed by the Council at least annually.
    17.2. When considering any new activity, the Clerk with the RFO shall prepare a draft risk assessment including
    risk management proposals for consideration and adoption by the Council.
  7. SUSPENSION AND REVISION OF FINANCIAL REGULATIONS
    18.1. It shall be the duty of the Council to review the Financial Regulations of the Council from time to time. The
    Clerk shall make arrangements to monitor changes in legislation or proper practices and shall advise the
    Council of any requirement for a consequential amendment to these Financial Regulations.
    18.2. The Council may, by resolution of the Council duly notified prior to the relevant meeting of Council, suspend
    any part of these Financial Regulations provided that reasons for the suspension are recorded and that an
    assessment of the risks arising has been drawn up and presented in advance to all members of Council.

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